33:522:334 Lecture Notes - Lecture 12: Joseph Heath, Stakeholder Theory, Profit Maximization
Document Summary
People should have the right info and have the freedom to choose. It is fair, if people pay for what they are willing to get, only if they have the proper informaion: sue in the court of law if no adequate informaion provided. For a market to work ethically: no decepion, no fraud, must have compeiion. **joseph heath: the reason stakeholder theory exists is because the way we deine proit max and self interest, stakeholder theory are all misconcepions, prior to division of labor. Self-interest = proit maximizaion: division of labor. Max proit is not the same as self interest: there must be alignment again between self-interest and proit max, heath"s hypothesis: The only job that an employee has is to do what shareholder says to do. The paient is the shareholder, doctor is employee. The goal of doctor is to make paient well. Then employee"s goal is to make shareholder well.